NatPower has signed a multi-year agreement with Tesla covering the supply and deployment of more than 25 gigawatt-hours of battery energy storage systems across European markets, with initial projects planned in Italy and the United Kingdom.
Under the agreement, Tesla will provide its Megapack battery storage technology, engineering, procurement, and construction services, and energy trading optimization through its Autobidder platform. The projects will be owned and operated by NatPower.
The companies said the partnership extends beyond equipment supply by integrating project development, financing, construction, and energy trading into a single framework designed to accelerate large-scale battery deployment.
The first phase includes five projects in Italy and the UK and forms part of a broader development pipeline targeting more than 100 GWh of storage capacity. NatPower estimates the full program could represent $4 billion to $5 billion in construction value and generate more than $15 billion in revenue over a 20-year period.
The agreement highlights the growing importance of large-scale energy storage in Europe as power systems face rising electricity demand from electrification, renewable energy integration, and the rapid expansion of artificial intelligence infrastructure and data centers.
Battery storage has become a critical component of grid modernization, helping balance intermittent renewable generation while providing dispatchable power and grid stabilization services. Europe is expected to require substantial storage additions over the coming decade to support decarbonization goals and maintain grid reliability.
Tesla has emerged as one of the world’s largest suppliers of utility-scale battery storage systems through its Megapack product, while NatPower has been expanding its position as a developer and operator of energy infrastructure projects across Europe.
According to the companies, the storage assets covered by the agreement will provide grid balancing services, optimize renewable energy output, and support electricity-intensive customers, including industrial facilities and data centers.
NatPower CEO Fabrizio Zago described the partnership as a shift from project development to large-scale execution, while Tesla Energy Vice President Mike Snyder said the agreement leverages Tesla’s integrated hardware, software, construction and trading capabilities to accelerate battery deployments across Europe.
By Charles Kennedy for Oilprice.com
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